The foundation of the cooperative movement in Mombasa is strong and it is supporting the movement even during the difficult times of the economy, Nelson Nyoro, Mombasa County Director of Cooperatives has stated.
The movement, he said, was vibrant and enjoyed the benefit of being diversified in the different sectors such that when some sectors were struggling because of the economic situation, there were others that were lifting the cooperative movement in the county.
“The cooperative business model is resilient and able to thrive even when there are turbulent in the market. We are working to push and deepen the model in the county to reach even the lowest part of Mombasa economy.” The Director said.
Mombasa County has 230 active cooperatives with a membership of more than two hundred thousand represented by the active societies.
There are also 23 registered dedicated youth cooperatives, some of which were in the previous program termed Huduma Saccos under the National Youth Service (NYS) program, that have been nurtured and placed under a different umbrella.
“The number of our youth cooperatives is small and there is need for more initiatives, introduction of seed capital, and capacity building so as to interest the youth into joining the cooperative sector. The established cooperatives should as well have youth friendly processes and products that attract them.”He added.
The current economic situation in the country, the high cost of living and the inflationary trends experienced globally, Mr. Nyoro stated posed a challenge in the movement in Mombasa as most cooperatives disposal income had diminished since large part of their income was going to meet their daily needs.“Most sectors of Mombasa economy are seasonal. The hotel and tourism sector for instance was dealt a blow by the effect of Covid 19 and we are glad from late 2021 to today things are a bit looking up.” He stated.
Other difficulties facing Mombasa cooperative movement he said comprised the heavy dependence on one employer by societies and the delayed remittances which he advised societies with one source of income to diversify into other markets, not necessary going outside their core businesses but having a diversified portfolio of members so that when one institution is experiencing difficulties, the others can boost it.
“We have become very deliberate in terms of enforcement. There is a specific regulation charged with enforcement of remittances.” He emphasized.
The establishment of own dedicated cooperative ministry and the launch of the second phase of the hustler fund, Mr. Nyoro however added were going to be game changers in the sector. The fund will be a new capital introduced to cooperatives that will allow cooperatives reach out to various members in the county enabling them access credit in an easy and affordable way.
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